2024-01-02 05:06

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose on Tuesday after seeing strong gains in the last few trading days of 2023, as traders cheered the prospect of early interest rate cuts by the Federal Reserve in 2024. Spot prices of the yellow metal were trading about $70 an ounce below a record high hit at the beginning of December, as markets welcomed dovish signals from the Fed and ramped up bets that the bank could begin trimming rates by as soon as March 2024. But further gains in gold were held back by anticipation of more U.S. economic readings for December, particularly key nonfarm payrolls data, which is due later this week. Spot gold rose 0.3% to $2,069.89 an ounce, while gold futures expiring in February rose 0.3% to $2,078.90 an ounce by 23:36 ET (04:36 GMT). Nonfarm payrolls awaited for more cues on Fed rate cuts Markets were now focused squarely on key nonfarm payrolls data for December, which is due this Friday. The reading is expected to show further cooling in the labor market- a trend that is likely to put more pressure on the Fed to consider cutting rates early. The CME’s Fedwatch tool shows traders pricing in an over 70% chance that the Fed will cut rates by 25 basis points in March. But before the March reading, the central bank still has to contend with a slew of economic readings, particularly on inflation and the labor market. While both inflation and the labor market cooled substantially through 2023, price pressures still remained well above the Fed’s 2% annual target. The labor space was also running relatively hot. Fed officials warned in December that the central bank will need to see more cooling in the two trends to consider trimming interest rates early. Officials also warned that bets on early rate cuts by the Fed were overly optimistic. But the Fed is still widely expected to trim interest rates eventually in 2024, a scenario that bodes well for gold, given that higher yields push up the opportunity cost of investing in the yellow metal. This trade had battered gold through most of 2023, before a strong recovery in December. Copper prices steady, but weak China data sullies outlook Among industrial metals, copper prices rose slightly on Tuesday as markets remained upbeat over stronger demand and tighter copper markets in 2024. But this notion was offset by data from China showing sustained economic weakness in the world’s biggest copper importer. Copper futures expiring March rose 0.2% to $3.8973 a pound, after rising some 2.1% in 2023. Official purchasing managers index data from China showed that manufacturing activity shrank more than expected in December, while non-manufacturing activity remained close to contraction. While a private survey showed some resilience in the manufacturing sector, growth still remained muted. Employment and inflation also failed to pick up in December. The readings indicated that business activity in the world’s top copper importer remained weak, a trend that could dent copper demand in 2024. But prices of the red metal are still expected to benefit from increased demand for electric vehicles and green energy, while supplies are expected to tighten amid major mine closures in Peru and Panama. https://www.investing.com/news/commodities-news/gold-prices-rise-in-strong-start-to-2024-early-rate-cuts-in-focus-3265187

2024-01-02 02:34

Copyrighted Image by: Reuters Investing.com -- Bitcoin rose sharply to a 21-month high on Tuesday on increased speculation that the U.S. Securities and Exchange Commission was close to approving a spot exchange traded fund for the world’s largest cryptocurrency. By 06:43 ET (11:43 GMT), Bitcoin rose 6% to $45,168.6, reaching its highest level since early-April 2022. But trading volumes remained slim on account of the New Year holidays. Bitcoin’s gains came as an extension of a stellar recovery in 2023, where the token surged more than 100% in value after starting the year at around $17,000. The cryptocurrency’s recent gains were driven chiefly by speculation over the approval of a U.S. ETF that directly tracks the token’s prices. The SEC has a January 10 deadline to approve or reject a spot ETF application from Ark and 21 Shares, according to a Reuters report. The ruling could set the precedent for ETF applications from several other fund managers for a similar product. The Reuters report also said that the SEC will notify other applicants by as soon as this week on whether they have been cleared to launch their products by Jan 10. BlackRock Inc (NYSE:BLK)- the world’s largest asset manager- has also applied for a spot bitcoin ETF. The SEC has repeatedly rejected applications for a spot bitcoin ETF over the past two years, citing concerns that the token’s decentralized and volatile nature will prevent fund managers from protecting investors against market manipulation. Currently, all U.S.-traded bitcoin ETFs track the futures of the token, which are traded on the Chicago Mercantile Exchange. Grayscale, which currently operates the GBTC (OTC:GBTC) ETF, has an application to convert the product into a spot ETF. The firm had marked a legal victory against the SEC over its repeated rejection of a spot ETF, which saw the regulator reconsider Grayscale’s application. Proponents of the cryptocurrency argue that the approval of a spot ETF will spur a deluge of capital inflows for bitcoin, given that the product allows traders to invest in the token without directly holding cryptocurrency. But analysts have cautioned that the approval may not trigger as large a bull run as expected, especially given that the crypto industry is still grappling with a massive loss of faith over the past two years. A series of high-profile bankruptcies, coupled with a regulatory crackdown against the world’s biggest crypto firms largely dented retail interest in crypto. This saw bitcoin slump to as low as $15,000 by late-2022. While hopes for an ETF approval drove a strong recovery for the token through 2023, trading volumes remained at a fraction of those seen during the 2021 bull run. High interest rates also limited the amount of capital flowing into crypto. https://www.investing.com/news/cryptocurrency-news/bitcoin-clears-45000-as-key-date-for-etf-approval-looms-3265173

2024-01-02 01:35

Copyrighted Image by: Reuters. Investing.com -- Oil prices surged higher Tuesday, bouncing after hefty losses in 2023 on rising concerns of supply disruptions through the crucial Red Sea region. By 09:20 ET (14.20 GMT), the U.S. crude futures traded 1.4% higher at $72.33 a barrel and the Brent contract climbed 1% to $77.78 a barrel. Rising tensions in Red Sea Tensions are rising in the Red Sea, a crucial trade route between Asia and Europe, after U.S. forces struck back against the Iran-backed Houthi group in the Red Sea, reportedly killing about 10 Houthi fighters and sinking three boats of the Yemeni group. This prompted Iran to send a warship to the region, the country’s state media reported on Monday, without elaborating on details of its mission, while the the Houthis said they had no intention of easing up on the strikes, which they claimed were in retaliation for the Israel-Hamas conflict. A wider conflict could close crucial waterways for oil transportation, adding a premium to the market. Danish shipping giant Maersk is set to decide later Tuesday whether to resume sending vessels through the Suez Canal via the Red Sea following an attack on one of its ships in the region last weekend. Crude benchmarks dropped 10% in 2023 Both contracts shed over 10% each in 2023, coming under pressure from persistent concerns over sluggish demand and higher-than-expected supply conditions. An economic rebound in top importer China failed to materialize in the year, while production cuts from the Organization of Petroleum Exporting Countries and allies largely underwhelmed markets. Weak economic data from China also continued to pile in, as purchasing managers index readings for December showed more deterioration in business activity - particularly the manufacturing sector. But the steep annual losses in crude attracted some bargain buying at the beginning of the new year. Traders also held out for any more production cuts from the OPEC+, although signs of discord in the production group, after Angola’s unexpected exit, kept expectations low. With U.S. production remaining at record highs in recent weeks, global oil markets are expected to be less tight than initially expected in the first quarter of 2024. This notion, coupled with signs of weakening demand in China, is expected to keep oil prices subdued. Still, crude prices may see some near-term relief amid growing optimism over early interest rate cuts by the Federal Reserve. Nonfarm payrolls data due this Friday is expected to provide more cues on the path of interest rates. A weaker dollar also afforded some strength to oil prices. https://www.investing.com/news/commodities-news/oil-prices-rebound-from-bruising-losses-red-sea-conflict-persists-3265163

2023-12-28 14:01

Copyrighted Image by: Reuters. Investing.com -- Oil prices retreated Thursday as concerns surrounding supply disruptions through the crucial Red Sea region eased, while U.S. crude stockpiles continued to grow. By 09:00 ET (14.00 GMT), the U.S. crude futures traded 0.6% lower at $73.67 a barrel and the Brent contract dropped 0.6% to $79.05 a barrel. Maersk returns to the Red Sea Many shipping companies stopped using Red Sea routes earlier this month after Yemen's Houthi militant group began targeting vessels, disrupting global trade and adding a risk premium to the crude market. Although Germany's Hapag-Lloyd said on Wednesday that it considered the route still too dangerous, shipping giant Maersk will sail almost all container vessels travelling between Asia and Europe through the Suez Canal, according to the group's schedule. That said, tensions remain elevated in the region as Israel has escalated its ground war in Gaza sharply, indicating that the war would last for months. U.S. inventories grow again Also weighing on the market was data from the American Petroleum Institute industry group on Wednesday showing U.S. crude stocks rose 1.84 million barrels in the week ended Dec. 22. Official numbers from the Energy Information Administration are due later Thursday, a day later than usual following the Christmas holiday, after having risen by 2.9 million barrels the prior week as U.S. crude output rose to a record 13.3 million barrels per day. A series of builds in U.S inventories over the past few weeks have rattled oil markets, especially as rising gasoline and distillate stockpiles pointed to cooling fuel demand in the largest consumer in the world. Oil set for 2023 losses Brent and WTI benchmark contracts are still set to lose around over 8% each in 2023. Concerns over top importer China - as an economic rebound failed to materialize - were a major weight on prices, as were fears of a slowdown in global crude demand due to high interest rates to combat inflation impacting economic activity. https://www.investing.com/news/commodities-news/oil-prices-slip-as-red-sea-supply-worries-ease-us-inventories-rise-3264394

2023-12-27 15:02

Copyrighted Image by: Reuters. MicroAlgo (MLGO) Developed QSDLT to Provide a More Secure Foundation for Bitcoin and Other Cryptocurrency Systems MicroAlgo Inc. (MLGO) (the "Company" or "MicroAlgo"), today announced the quantum shield distributed ledger technology (QSDLT), designed to provide a stronger, more secure foundation for Bitcoin and other cryptocurrency systems. In traditional blockchain systems, security relies heavily on cryptographic algorithms based on public key cyphers. However, the emergence of quantum computers threatens this system. Quantum computers can solve problems in a relatively short period of time that current conventional computers cannot handle, including some widely used cryptographic algorithms. Specifically, the emergence of quantum computers could crack current systems based on RSA and elliptic curve encryption algorithms. This means that private keys and transaction data could be easily accessed by quantum computers, jeopardizing the security of the entire blockchain system. To counter this threat, the research and development of QSDLT have become particularly urgent. To protect the Bitcoin system from the threat of quantum computers, MicroAlgo Inc.'s QSDLT was created as an innovative solution. The goal of QSDLT is to build a strong shield for the Bitcoin system by integrating quantum security, which is not just a simple upgrade to the traditional blockchain system, but a revolutionary change to the entire cryptocurrency ecosystem. MicroAlgo Inc.'s QSDLT employs a series of advanced cryptographic algorithms, particularly those that combat quantum algorithms, to ensure that Bitcoin transactions and user identities are fully protected. Its core is to provide a security framework that is resistant to quantum computing threats, incorporating quantum security into DLT to provide stronger protection for Bitcoin and other cryptocurrencies. Its design principles include countering attacks from quantum algorithms, achieving invariance, reducing transaction costs, enabling decentralization and increasing transparency. The introduction of this technology marks the next stage in the evolution of the Bitcoin system. Anti-quantum algorithm defence mechanism: One of the core aspects of MicroAlgo Inc.'s QSDLT is its robust anti-quantum algorithm defence mechanism. Cryptographic algorithms used in traditional blockchain systems, such as RSA and elliptic curve encryption algorithms, may be threatened by quantum computer attacks in the future. To address this challenge, QSDLT employs well-thought-out cryptographic algorithms that are more resilient to quantum computer attacks. This ensures that QSDLT will be able to keep Bitcoin transactions secure and tamper-proof in the face of the rise of quantum computers. Invariance and transparency: QSDLT focuses on maintaining the invariance of the blockchain, meaning that once a transaction is confirmed and added to the blockchain, it cannot be tampered with. This is one of the fundamental characteristics of the blockchain and is critical to ensuring the trustworthiness of the Bitcoin system. Meanwhile, MicroAlgo Inc.'s QSDLT promotes transparency through the decentralized nature of the blockchain. Every participant is able to view and verify the history of transactions, thus enhancing overall traceability and openness. Post-quantum distributed ledger technology (PQDLT): MicroAlgo Inc.'s QSDLT technology focuses not only on anti-quantum algorithm defense, but also places itself in a broader technological context to form PQDLT. this denotes the convergence of QSDLT with innovations in the fields of machine learning, deep learning, 6G, and the quantum internet, laying the groundwork for the future of the digital economy. The concept of PQDLT aims to achieve comprehensive security for the Bitcoin system and to facilitate the development of a digital financial system. Reduced costs: QSDLT effectively reduces the cost of Bitcoin transactions by employing carefully optimized algorithms and technologies. This feature not only makes the Bitcoin network more accessible, but also provides a lower barrier to participation in Bitcoin transactions for a broader group of users. Lowering the cost will help facilitate mass adoption of Bitcoin and drive broader adoption in the digital currency space. Highly scalable: MicroAlgo Inc.'s QSDLT is highly scalable with future growth needs in mind in its basic concept. This allows QSDLT to adapt to the increasing size of the Bitcoin network's user base and to be flexible enough to meet the growing demands of digital finance. High scalability is one of the key factors that make QSDLT a trusted infrastructure. MicroAlgo Inc.'s QSDLT is more than a simple upgrade to the traditional blockchain. It is an update to combat the threat of quantum computing. Its key features, including anti-quantum algorithmic defence mechanisms, invariance and transparency, cost reduction, PQDLT, and high scalability, combine to create a robust and flexible security framework. MicroAlgo Inc.'s QSDLT provides the Bitcoin system with a robust defence against quantum algorithms with its strong anti-quantum algorithmic capabilities, making transactions secure and tamper-proof. At the same time, QSDLT maintains the basic principles of the blockchain, enhancing overall trustworthiness through invariance and transparency. Reduced transaction costs make the Bitcoin network more attractive, further driving mass adoption of the digital currency. As the threat of quantum computing emerges, the emergence of MicroAlgo Inc.'s QSDLT marks the dawn of a new era of Bitcoin security. The basic concepts and key features of QSDLT present a blueprint for the future of digital finance, an innovation that will open up more possibilities for the digital economy, ensure that Bitcoin and other cryptocurrency systems remain secure and trustworthy in the quantum era, and lead the way for a vibrant future of digital finance. the future of digital finance. https://www.investing.com/news/cryptocurrency-news/microalgo-developed-qsdlt-to-provide-a-more-secure-foundation-for-bitcoin-and-other-cryptocurrency-systems-432SI-3264069

2023-12-27 06:37

Investing.com-- Gold prices kept to a tight range in Asian trade on Wednesday after rising optimism over early interest rate cuts by the Federal Reserve drove a strong melt-up in prices through December. The yellow metal blew past key levels in recent sessions, and was now trading less than $100 below a record high hit at the beginning of the month. Gold’s recent rally was triggered by the Fed signaling it was done raising interest rates, and that it will trim lending rates in 2024. But markets bet that the Fed will cut interest rates by as soon as March 2024, especially as recent data showed sustained cooling in U.S. inflation. Spot gold steadied at $2,064.84 an ounce, while gold futures expiring in February rose 0.3% to $2,075.85 an ounce by 01:14 ET (06:14 GMT). Gold set for strong gains in 2023 on rate cut hopes Gains in December put gold prices on course to rise between 12% to 14% in 2023. But the yellow metal still lagged most risk-driven assets, particularly stocks, given that U.S. interest rates remained high. By comparison, the S&P 500 was set to add about 24% in 2023. Still, the yellow metal stands to benefit further in 2024, especially as U.S. interest rates decrease and as global economic conditions deteriorate. While the U.S. economy has remained somewhat resilient, other parts of the world- such as the euro zone and China- are grappling with a sustained slowdown in growth. The Fed is widely expected to trim interest rates between three to five times in 2024, with markets betting that the first of the expected rate cuts could come by as soon as March 2024. High interest rates push up the opportunity cost of investing in gold- a trend that had limited any major gains in the yellow metal through most of 2023. Increased safe haven demand- amid signs of a potential escalation in the Israel-Hamas war- could also potentially increase safe haven demand for the yellow metal. Copper prices advance, set for mild gains in 2023 Among industrial metals, copper prices rose on Wednesday, extending recent gains as weakness in the dollar buoyed most commodity prices. Copper futures expiring March rose 0.5% to $3.9223 a pound. Despite logging a strong rebound in December, copper prices were still set for only mild gains in 2023- about 3%- as concerns over an economic slowdown in top importer China battered prices. Copper prices had fallen to as low as $3.5195 a pound earlier this year. But the red metal is potentially set for a strong rebound in 2024. Increasing demand for electric vehicles, coupled with a global push into green energy, is expected to ramp up consumption of the red metal, which is a key component in battery and electric technology. Supplies are also expected to tighten, with major mine closures in Peru and Panama. https://www.investing.com/news/commodities-news/gold-prices-steady-as-early-ratecut-hopes-drive-strong-gains-3263842